The Swiss midfielder, 24, joined Arsenal from Borussia Monchengladbach last summer for £35million.
However, Xhaka has struggled to adapt to life at the Emirates and has also been criticised for his lack of discipline by Arsene Wenger and Arsenal fans alike. He has already received eight yellow cards and two red, five and one in his last five appearances for Arsenal, and Wenger admits he is not happy with someone who constantly gets in trouble with the referees.
But it is thought Bayern are interested in the Switzerland international despite his disciplinary problem, with Hitzfeld revealing the German club are long-term admirers of the midfielder.
Speaking to Bild, Hitzfeld says Bayern are keen on Xhaka and can see him develop into a major midfield player under the right management:
“Bavaria certainly has Xhaka on the radar.
“Xhaka is always a topic of conversation for current top clubs and his development is not yet completed.”
Arsenal could see a major exodus of players at the end of the season, and although Bayern are reportedly eyeing up Xhaka as a possible replacement for the retiring Xabi Alonso, it’s hard to see the Swiss midfielder leaving the Emirates having signed for them last summer.